Nordea increases GDP’s growth forecast for Latvia to 3.3% in 2012

Nordea Bank has increased the year's 2012 growth forecast for Latvia to 3.3%, the bank's chief economic expert Andris Strazds said in a video conference today.

The growth forecast has been raised
due to the good growth results in the first quarter and the first half of the
year. Strazds believes that Latvia's economy grew by approximately five% in the
first six months of the year, writes LETA.

Strazds believes that even if
growth in the second half of the year slows down, Latvia's growth in 2012 will
still be between three to 3.5%.

GDP growth in Latvia

Source: Nordea Markets and Reuters EcoWin

As reported, this past March,
taking into account the situation within the euro-zone and other global growth
risks, the Finance Ministry reduced Latvia's macro-economic development
forecasts for 2012.

The Finance Ministry predicts
Latvia's GDP will increase by two% this year, down from the previous forecast
of 2.5%.

Circular economy for modern growth: EU and the Baltics EU’s circular economy plans are aimed at efficient use of natural resources and raw materials, waste disposal, while fostering energy savings and reducing CO2. Adequate actions in the Baltic States would contribute to “closing the loop” of product lifecycles through greater recycling and re-use, while bringing benefits to environment, business and economic growth.